Standard and Poor's believes in giving credit where credit's due. General Motors doesn't qualify. According to the Detroit News, S&P has removed GM from its list of companies in line for a credit rating upgrade. The agency has decided that loaning money to the ailing automaker remains a risky venture, even with a new labor contract that GM says will save them billions of dollars. S&P still sees "serious challenges ahead" for the beleaguered company. ""We had to look at the economy and non-contract issues," demurred Analyst Bob Schultz. "Still, the most important factor is if they're using or generating cash. We still expect GM to be using cash in their North American operations." Schultz predicts weak U.S. auto sales will keep GM burning through its reserves, as it continues spending on restructuring without a significant increase in revenues. Even if GM's products suddenly find favor in the American markeplace, it's unlikely that S&P will upgrade GM for another six months to two years.

"At one point, Aaron Taylor, a top regional UAW representative, took to a loudspeaker system. 'Don't listen to these outsiders!' Taylor yelled at employees of the Jefferson North assembly plant. 'This is the best deal. Just listen and read the facts and you will know.'" The Detroit News reports that the United Auto Workers (UAW) workers in a fourth large assembly plant were unmoved by Mr. Taylor's entreaties. According to "local officials," 56.7 percent of 1,100 production workers and 79.5 percent of 195 skilled trades workers rejected the contract. The numbers are instructive: the production workers are the employees least likely to suffer from the proposal's "two tier" wage structure. Reading between the lines, the new contract's lack of iron-clad job guarantees has these workers spooked. This weekend's no vote comes hot on the heels of a similar snub by UAW members at Chrysler's St. Louis and Newark, Delaware plant (which is scheduled for closure). And now… "The fate of the deal may rest in the hands of workers who will vote this week at several large Metro Detroit factories: Warren Truck, Sterling Heights Assembly and stamping operations in each city. Collectively the four facilities employ 9,500 UAW members. Locals at the Belvidere, Ill., assembly plant and four factories in Kokomo, Ind., also vote this week." Look for the UAW to re-double their efforts to "convince" members of the deal's wisdom, and stand by for our take on what might happen next.

TTAC reader David Robinson worked for Ford’s Talbotville plant in 1972, when he was 19. After five years on the assembly line, he was promoted to a supervisory position. Five years later, when Robinson was laid-off, he returned to school to earn his Manufacturing Technicians papers. Robinson then worked as a Service Advisor in a Ford dealership. (“Ever try to sell an oil change to someone who is pissed off because they just had their car towed in for the 4th time with a blown ignition module?”) His last job: a Production Part Approval Process (PPAP) technician for Siemens VDO Automotive in London, Ontario. In that capacity, Robinson worked with all of The Big 2.8, BMW, Volkswagen and most of the tier one and two suppliers (e.g. Bosch and Denso). He was also the Quality Systems coordinator. His position was “downsized” three years ago. Last week, Robinson listened to our interview with Ford’s Manager of Global Quality Data Systems. He contacted us via email to say “what is happening right now with the big 3 is just fulfilled prophecy.” I called him to discuss his experiences and his insight into the cultural roadblocks blocking Ford’s recovery.

Given the changing pace of technology, the price of factory-fitted satellite navigation and the itinerant traveler's tendency to rent their chariot, a portable GPS (Global Positioning Satellite) navigation system is the ideal solution. When choosing an electronic pathfinder, map quality makes all the difference. Magellan (like Garmin) uses the premier map data supplier Navteq. The Magellan Maestro Series offers three models with a "just right" screen size (4.3"). The 4000 ($399) is the base model. The 4040 ($499) adds Canada (the maps, not the country) and Bluetooth, which lets you access addresses lurking inside your phone/palmtop. Although you can upgrade the 4040 to real-time traffic data for another hundred bucks, that same Franklin buys you the 4050 ($599) with a built-in traffic jam info receiver. On the road, the Magellan's 4040's geek fabulous 20-channel sirfsStarIII chipset instantly locked onto a GPS signal and updated quickly. The maps are pellucid, the voice prompts clear and the touch screen ergonomically sound. On the downside, the map disappears during recalculation and full-on sunlight is still a bugbear (a built-in visor would help). While RV-ing seniors might appreciate the AAA's TourBook info and roadside assistance (trip A members only), it would be nice to be able to choose a more (ahem) upmarket guide. Overall, the 4040 is a decent but not outstanding GPS device– at $499. But Costco's got 'em for $349 (in store price, call ahead). For that money, you're good to go.

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I just finished editing a piece by Steven Wade about Saab's [alleged] renaissance. Bolstering the arguments of a writer whose opinions I don't share may seem a bizarre way to spend my time, but it's a necessary part of TTAC's dedication to platforming ALL viewpoints. (I love verbizing in the morning; its victorizes smells.) As a Jewish Quaker, I do believe there is but one truth. But I'm not so egomaniacal as to believe that I alone am able to discern it. More prosaically, I maintain a steadfast conviction that I can be wrong about anything at any time for any number of reasons. I know that sounds kind of weird coming from the founder/gatekeeper of the most strident of automotive websites, a site that earns more ire than any other. But I reckon that's because our legions of critics mistake our passion for arrogance. The truth is TTAC's writers and commentators care. Which is why I'm not really bothered by Mr. Wade's single-minded belief that Saab's products are vastly underrated. and will rise again. The guy's got heart. He's one of us. And it seems to me that "we" are gathering strength. I see it in our numbers. I see it in the comments sections (check out the 459 comments on "In Defense of the Big Three"). And I see it in my burgeoning in-box, where readers do their level best to contribute to our mission. Some day, we'll be breaking news instead of regurgitating it. Some day, we'll be ahead of the new car curve. But right now, tonight, I feel a sense of satisfaction. And for that I thank you, from the bottom of my heart.

Just-Auto [sub] reports Honda's catching flack over hiring practices at their new Greensburg, Indiana factory. No, it has nothing to do with unions or affirmative action; this time it's the state's legislators who are whining. Honda wants to only hire workers who live within a 20-county area (about a one-hour drive) around the new plant. Representatives whose constituents were excluded from applying don't like "granting state incentives to companies that selective exclude certain Hoosiers from even applying for employment." A representative from the governor's office stated that in exchange for the incentives, they only asked that Honda hire state residents. She added that the state had no plans "to prescribe hiring practices to private companies." Even with the geographic restrictions, over 30K people applied online for 2K jobs. The new Honda plant is set to open in early '08 to build 200K Civics per year.

It's not such horrible news dear boy. It's not as if Bentley's sticking that frightfully underpowered Prius' Synergy Drive into the Arnage. Leftlane News tells me The Bentley Boys plan to hybridize their Eisenhower-era 6.75-liter V8 engine to keep the old girl kosher under the European Union's more stringent emissions laws. The historic powerplant stays. Huzzah! (I'll be sending the boffins some fine port when I get a minute.) While I'm thrilled– thrilled I tell you– that Bentley will use battery power to keep its rolling cathedrals motive, it's a shame they have to meet green laws. I mean, the idea that Bentley's limited production could somehow impact global temperatures is as preposterous as asking their owners to join the Peace Corps. If it was in this writer's hands, so long as Bentley makes cars with more torque than a Peterbilt, they're good to go. Shove a Bugatti Veyron's quad-turbo W16 in there? Why not old bean; why not?

In the blog concerning the United Auto Workers' (UAW) efforts to force encourage their Locals leaders to sign the new, proposed contract with Chrysler, we asked if a reader could provide a copy of the letter from the union's central office to the front lines. And here it is. In the missive, UAW Chrysler VP and Director General Holiefield instructs Local leadership to sell the contract. "All appointed union representatives" must show their support by returning the document with their signatures. The number of lines provided indicate that the letter is intended to be circulated by the Local President and Bargaining Chair to all appointees under their purview. Since the Local president and Bargaining Chair decide who gets the union's plum appointments, and the International gives final approval, if your signature ain't on this letter, you ain't getting squat (at the very least). Could this be what Gettelfinger was talking about when he told the press after the Chrysler Council meeting last Monday that "we have a democratic union?"

Last month, BMW revealed some of their plans for the near future. One highly-touted model: the neither-fish-nor-foul Progressive Activity Sedan (PAS). The concept is supposed to blend the best features of a sedan, hatchback, station wagon, SUV, CUV, XUV, SAV, Mercedes CLS and whatever else they could toss in into one 5-series-sized vehicle. BMW says the design highlights "efficient packaging methods and intelligent functionalities" (kind of like the 1949 Kaiser Traveler). Up until now, propellerheads had to be satisfied with the usual camouflaged spy shots. As part of our renewed partnership with photochopper extraordinaire Andrei Avarvarii, TTAC is proud to present presents our informed speculation on the PAS' non-flame-surfaced glory. BMW's slated the model's introduction for 2010.

[For more images visit www.avarvarii.com]

The Arizona Daily Star reports that a University of Arizona researcher has tested the levels of Staphylococcus aureusin (S. aureus) on steering wheels and seat belt buckes. Jonathan Sexton discovered the bug on 32.4 percent of these automotive surfaces; nine percent of the microbes were methicillin-resistant staphylococcus aureus or MRSA. In comparison, Sexton discovered just 6.3 percent of public restrooms harbored S. aureus and MRSA. Just in case you're wondering, "Staphylococcus aureus is commonly found on the skin and in the noses of healthy individuals. It may cause infections with symptoms ranging from pimples, boils and other skin conditions to life-threatening pneumonias and blood stream infections." To wit: a eighteen-year-old Virginia girl died of MRSA on Monday. We recommend some anti-bacterial wipes and a bottle of Purcel the next time you rent a car. 

I love the smell of desperation in the morning. Even as workers at the St. Louis plant decided Chrysler couldn't Ram a new contract down their throats, UAW officials are stepping up their efforts to rally support. The Wall Street Journal reports the UAW's leaders (those who haven't already come out against the new contract, that is) are telephoning their representatives looking for support for the contract in a lobbying effort that the union's chief bargainer, General Holiefield, described as "unusual" (i.e. urgent). Holiefield also sent a letter to local officials asking for their support as that the UAW feels the contract provides "gains and protections for all UAW Chrysler workers." If any of our readers have seen one of these letters or know what was discussed in those phone calls, we'd love to hear from you. We're dying to know what strongarm tactics incentives the UAW's offering for its members' support.

Business Week scribe Jim Henry calls them "wallflowers:" cars with obvious charms that have customers lined-up none deep. Now that Chrysler has somewhat kinda hang on we better wait for this union contract to go through before we actually announce anything decided to trim some dealer deadwood, Henry explains the reasons why great cars' sales suck. Why is the Hyundai Azera a drug on the market? "Customers almost have to discover the Azera for themselves. Except when it was first launched, it hasn't had much model-specific advertising." Kia Amanti? Same deal (as opposed to hideous looks and a misguided attempt to take Kia upmarket). And add Daimler's R-Class to that list. As for the Saab 9-5, Henry nails it: "It competes with European heavyweights like BMW and Mercedes-Benz, which have bigger engines, more prestige, more awareness, more of almost everything." Nissan Quest? Styling's too rad. Lincoln Town Car? Ford Explorer? Buyers downsized. So now you know. Oh, one more thing: Henry reckons you should buy one these turkeys also-rans 'cause they're cheap. "That's one of the good things about wallflowers—they are usually very happy to dance if you ask them." Ain't that the truth. 

The whole cheap Chinese cars are coming to America story has died down– at least until Chrysler pops its Chery. (Look for a resumption of hypestilities at this year's Detroit Auto Show.) Meanwhile, Chinese automakers are warming-up for the world's most competitive automotive market by probing the soft underbelly of the third world, where safety concerns count for nought. Nazret.com reports that Holland Car (an Ethiopian – Dutch partnership) has unveiled its first locally assembled car, built from parts imported from China. West Africans can now purchase the "Abay" (Amharic for the Blue Nile) for $16k. The Abay boasts a four-cylinder engine hooked-up to a five-speed manual transmission. The car arrives some two years after the plant was completed in Mojjo, 70-kms south east of Addis Ababa, at the cost of 20 million birr (plus a EU510k grant by the Dutch government). According to company co-founder Tadesse Tessema, "We are bringing new technology to the country, offering customers to buy new cars instead of older and more expensive ones from Europe." So it's a two-prong deal, as company co-owner Ethio-Holland Transport already imports used European cars for [a fraction of] the country's 75m inhabitants. 

Talk about keepin' it real. The badge-engineered Morris Oxford built India's automotive economy from scratch, but a new era of econoboxes chipped away at the Ambassador's (a.k.a. Amby) market share and umm, charm. Like Detroit, Hindustan Motors must see the writing on the wall; the latest Amby sports a freshened interior and increased NVH control that take it from tail bone bashing to merely harsh. To accompany the new-ish electronically controlled powertrains and fully synchro'd transmissions (1974 called, they want their stuff back), the company's devised a new name to tempt aspiring if nostalgic-minded motorists: Avigo. Looking like a Mini (no caps) on the cheap, the jury's out on the Avigo's success in the fully-globalized land of Bollywood dancers and Bhangra beats. Tunak, Tunak!

God knows how the United Auto Workers' leadership thought they could strip the already contentious GM contract of its job guarantees and sell it to 45k Chrysler members. While the union was entranced by another multi-billion dollar bribe contribution to the Mother of All Health Care VEBA Superfunds, Chrysler workers were listening to WII-FM (What's In It For Me?). Despite a whack on their heads six-hour strike, some members have decided the contract isn't in their best interests. The AP is reporting that UAW workers at Chrysler's St. Louis (MO)  plant have rejected the new deal by a staggering 80 percent. Their thumbs-down follows a thumbs-up by 800 workers at Chrysler's Kinosha (WI) engine plant– by an equal though opposite margin. Interestingly, only 1400 of 2100 Missouri workers voted (disinterested or fear of reprisals?). AP reporter Jim Salter didn't speculate on the final outcome, but he did set the scene for the struggle to come: "The votes come as UAW officials in Detroit stepped up efforts to convince the rank-and-file to approve the pact in the face of dissent by a top bargainer." We'd love to know the exact nature of those "stepped-up" efforts.